26 Questions
When the income of a minor child is clubbed with the income of mother or father, how much the deduction will be allowed to mother or father?
Actual income clubbed with the income of mother or father, whichever is less
A multinational company can use which prices to create profits in low tax regimes and loss in high tax regimes?
Transfer prices
'It is an art of dodging tax without actually breaking the law'. This is related to:
Tax Avoidance
Which of the following are considered as supply factors affecting the flow of Foreign Direct Investment (FDI)?
Logistics
For customers, what are the areas of ethical and social responsibility concerns?
TQM
Which of the following changes have been made to the Anti-competitive conduct under the Act?
Entities not engaged in identical or similar trade included under Anti-competitive Agreement
What are the appropriate tax planning perspectives in case of a shut down or continue decision under the Income Tax Act, 1961?
Deduction allowed to undertaking under section 80 IB / 80 IC of the Act
Which of the following statements are correct for Agricultural Income?
Income from farmhouse
Match the variables in A.T. Kearney Globalization Index with their respective integration types:
Economic Integration = Foreign Direct Investment Personal Integration = International Tourism and Travel Technological Integration = Internet users Political Integration = Ratification and multilateral treaties
Match the accounting concepts with their purpose/applicability:
Going Concern Concept = The same accounting method used by a firm from one period to another Consistency = Relate to the relative size or importance of an item or event Cost Concept = The normal basis used to account for assets Materiality = An inappropriate assumption for a firm undergoing bankruptcy
The money used for trading is allowed to be transferred directly to clearing corporation, through
Unified payments interface
The Application Supported by Blocked Amount (ASBA) used in the passage refers to which market?
Primary Market
The SEBI has acted on its regulatory remit of protecting investors cash and
Securities
Statement A: SEBI has offered relief to brokerages that stand to lose float income on account of upstreaming client money to dealing corporations. Statement R: Brokerages have been allowed to upstream clients' fluid in the form of fixed deposit lien or mutual fluid units. In the light of the above statements, choose the correct answer from the options given below
A is true but R is false
Which are reasons that make replication of ASBA for the secondary market complicated?
Applicability of SEBI guideline
Sequence the following steps in the operational functioning of the Asset Reconstruction Companies as per SARFAESI Act 2002: Charge a 2 percent management fee, Issue security receipts to bank, Make payment to bank, Buys loans of bank at a discount, Carry out the recovery. Choose the correct answer from the options given below:
D, A, B, E, C
Arrange the following steps in the problem-definition process in a logical sequence: Determine the unit of analysis, Determine the relevant variables, Write managerial decision statement and research objectives, Write research question and or research hypothesis, Identify key problems. Choose the correct answer from the options given below:
E, C, A, B, D
As suggested by Collins, arrange the following leadership levels in sequentially higher order: The leader is a competent manager, The leader is an executive, The leader is a highly capable individual, The leader is an effective leader, The leader is a contributing team member. Choose the correct answer from the options given below:
C, A, E, D, B
Starting from the earliest, sequence the steps taken to develop the money market in India: Introduction of Ways and Means Advances (WMA) linked to bank rate, Introduction of Liquidity Adjustment Facility (LAF), Introduction of Commercial Paper, Introduction of Interest Rate Swaps (IRSs), Implementation of Real Time Gross Settlement (RTGS). Choose the correct answer from the options given below:
B, C, D, A, E
Arrange the following service gaps as per SERVQUAL approach in a logical sequence: The gap between management perception and service quality specification, The gap between service quality specifications and service delivery, The gap between the customer's expectations and management perception, The gap between perceived service and expected service, The gap between service delivery and external communications. Choose the correct answer from the options given below:
C, A, B, E, D
Arrange the following steps in a logical sequence in recourse to dishonouring a negotiable instrument: Noting, Compensation, Protesting, Notice of dishonour, Penalties. Choose the correct answer from the options given below:
A, C, D, B, E
Arrange the following advance payment of tax in ascending order (Section 207 to Section 211) of the Income Tax Act 1961: Instalment of advance tax and due date, Liability for payment of advance tax, Payment of advance tax by the assessee on own record, Condition of liability to pay advance tax, Computation of advance tax. Choose the correct answer from the options given below:
D, E, A, B, C
According to the passage, why do payment banks need to carve out a distinct business segment for themselves?
Because payment banks are in competition with full-service banks
Given below are two statements: Assertion A: Initial UPI adoption has surpassed the most optimistic expectations on account of the waiver of the merchant discount rate. Statement II: The future growth of UPI will be facilitated by providing solution for the conduct of business and to becoming a medium of commerce. Choose the most appropriate answer from the options given below:
Both Statement I and Statement II are correct
In totalitarianism, individual freedom is subordinated to the power of the authority. Which of the following is not a type of totalitarianism?
Conservative
Compute the Return on Total Capital employed based on the given information.
50%
Study Notes
Commerce Paper II - Shift I
Types of Totalitarianism
- Totalitarianism: individual freedom is subordinated to the power of a group or state
- Types of totalitarianism:
- Theocratic
- Right Wing
- Tribal
- Conservative is not a type of totalitarianism
Directorate General of Foreign Trade (DGFT)
- Facilitates and promotes foreign trade in India
- Implements the foreign trade policy of India
- Governed by the Ministry of Commerce and Industry
Balance of Payment Accounts
- Changes in holdings of gold and foreign currencies by official monetary institutions are accounted for in:
- Official Reserves Account
Regional Economic Integration
- Association: North American Free Trade Agreement (NAFTA)
- Comprises of:
- USA
- Canada
- Mexico
Labour and National Wealth
- According to William Petty, labour is "the father of wealth" and it must be included in any estimate of national wealth
Partnership Dissolution
- When partnership is dissolved, capital is:
- Rs. 40,000 and Rs. 50,000 respectively
- Profit or loss on realization is Rs. 8,000
Return on Total Capital Employed
- Net Profit: Rs. 100,000
- Provision for tax: Rs. 100,000
- Income from Investment: Rs. 10,000
- Fixed Assets: Rs. 450,000
- Current assets: Rs. 1,500,000
- Interest on debenture: Rs. 10,000
- Reserves: Rs. 100,000
- Return on Total Capital Employed: 30%
... (rest of the questions will be summarized if you want)### Multiple Choice Questions
- Disengage efforts such as termination ceremonies
- Social support from spouse, friends, supervisors, and co-workers
- Legal framework governing Regional Rural Banks (RRBs)
- Regional Rural Banks Act, 1976
- RBI notified domestic accredited credit rating agencies
- Brickwork ratings, CRISIL ratings, and others
- Spread in banking sector
- Defined as a function of Forex, Net Interest income, Rate Sensitive Assets, and Asset Ratio
- Reasons for manufacturers and retailers to brand their offerings
- Helps to gauge product quality, enables premium pricing, contributes to corporate identity, informs about product source, and develops customer loyalty
- Tools for consumer promotions
- Price off, refunds, coupons, event sponsorship, and off-invoice
Agent's Liability
- Agent is personally liable to third parties in certain situations
- If an agent acts for an undisclosed Principal
- If an agent signs a contract in Principal's name
- If an agent works for a foreign Principal
Right to Information Act 2005
- CPIO/SPIO obligations if application for information is rejected
- Furnish reasons for rejection, particulars of appellate authority, and period within which an appeal may be preferred
Competition (Amendment) Act, 2023
- Changes to competition law
- Intimation of merger and acquisition deals exceeding Rs. 2000 crores
- Reduced timeline for assessment of combinations from 210 to 150 days
- Changes to definitions of "exclusive selling agreements" and others
Tax Planning Perspectives
- Appropriate tax planning perspectives in case of shut down or continue decision
- Business loss and unabsorbed depreciation can be carried forward and set off against profit and gain
- Tax benefit of deduction under Section 33AB and 115VT may be withdrawn and liable to tax for the year in which business is discontinued
Agricultural Income
- Income from agricultural activities
- Includes income from self-grown crops, rent and rates derived from land, and income from making produce fit for marketing
A.T. Kearney Globalization Index
- Components of the index
- Economic Integration, Personal Integration, Technological Integration, and Political Integration
Accounting Concepts
- Matching of accounting concepts with their purposes getApplicability
- Going Concern Concept, Consistency, Cost Concept, and Materiality
Herfindahle-Hirschman Index
- Market types based on the index value
- Zero (extremely competitive market), 0-1,000 (monopolistic competition), 1,000-1,800 (oligopoly), and 1,800-10,000 (monopoly)
Techniques and Features
- Matching of techniques with their features
- Pooling, Financial Hedge, Natural Hedge, and Netting
Non-Parametric Tests
- Matching of non-parametric tests with their parametric counterparts
- Friedman Test, Mann-Whitney U Test, Kruskal-Wallis Test, and Wilcoxon Signed Rank Test
Human Behavior in Organizations
- Matching of motives with their characteristics
- Achievement, Control, Extension, and Dependency
Taxation Perspective
- Matching of taxation concepts with their characteristics
- Tax Management, Tax Avoidance, Tax Evasion, and Tax Planning
Committees and Reports
- Matching of committees with their reports and purposes
- Rashid Jilani Committee (1992), Soduani Committee (1994), Malegam Committee (1995), and Shere Committee (1995)
Retail Store Formats
- Matching of retail store formats with their product assortments
- Discount, Specialty, Category Killer, and Supermarket
Companies Act, 2013
- Matching of schedules with their underlying themes
- Schedule I, Schedule II, Schedule III, and Schedule IV### Assertion Reason Questions
- When a partner retires, all assets and liabilities are revalued according to current value.
- The balance sheet should show the correct values of assets and liabilities.
- Both A and R are correct but R is not the correct explanation of A.
Sale and Lease Back Arrangement
- Manufacturing companies use sale and lease back arrangement to unlock investment in fixed assets.
- In a sale of lease back arrangement, the companies sell the asset to a leasing company, and lease it back to enjoy the uninterrupted use of asset in their business.
- Both A and R are true and R is the correct explanation of A.
Logistics Management
- The only purpose of logistics management is not to coordinate activities of moving products from the factory to customers.
- Logistics management is not only the responsibility of marketing function.
- Both Statement I and Statement II are incorrect.
Company Registration
- Certificate of incorporation is conclusive evidence that all the requirements of the Companies Act have been complied with in respect of registration.
- After incorporation, if the company makes a fresh contract in terms of the pre- incorporation contract, the liability of the promoters shall come to an end.
- Both Statement I and Statement II are true.
Digital Payments
- Interoperability guidelines for prepaid payment instruments with United Payments Interface (UPI) bolster the business case for digital wallets.
- Payments banks need to be part of the UPI ecosystem and carve out a distinct business segment.
- UPI will grow by providing solutions for the conduct of business and will have to incorporate lending at some point to become a comprehensive medium of commerce.
UPI Adoption
- Initial UPI adoption has surpassed the most optimistic expectations on account of the waiver of the merchant discount rate.
- The future growth of the UPI will be facilitated by providing solutions for the conduct of business and to becoming a medium of commerce.
Contactless Payments
- Contactless payments infrastructure will empower fintechs to push innovation in finance.
- The digital payments platform will continue to play a key role in the infrastructure that is being developed around contactless payments.
Payment Banks
- Payment banks need to be part of the UPI ecosystem to survive.
- Payment banks need to carve out a distinct business segment where they have an advantage over full-service banks.
- UPI facilitation of cross-border remittances, consumer lending through RuPay credit cards, and bill payments using standing instructions will promote the growth of payment banks.
Investor Protection
- The proposed facility similar to the Applications Supported by Blocked Amount (ASBA) for secondary markets has elements to protect investors while increasing their potential earnings.
- The Unified Payments Interface (UPI) allows money used for trading to be transferred directly to clearing corporations, which can then settle with brokers.
- This flushes out money idling with brokers, lowering risk of abuse and containing the fallout in case of broker-default.
SEBI Regulations
- SEBI has acted on its regulatory remit of protecting investors' cash as well as their securities.
- Brokerages have been allowed to upstream clients' funds in the form of fixed deposit lien or mutual fund units.
- This should keep intermediation fees low while the market regulator nudges the system to clear excess funds from the broker channel.
Practice questions from the UGC NET Commerce June 2023 question paper. Test your knowledge and prepare for the exam!
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